My Top 3 Investment Themes Right Now
When it comes to spotting opportunities, always pay attention to dominant themes—especially when looking for hot ETF opportunities.
For example, over the last few days, some of those dominant themes have been found in volatility, cryptocurrencies, and in dividends.
We’ll share some examples of how investors might get in on the action.
Schwab U.S. Large Cap Value ETF (SCHV)
With an expense ratio of 0.04%, the SCHV holds a portfolio of large cap value stocks, including Berkshire Hathaway (BRK-B), Johnson & Johnson (JNJ), Exxon Mobil (XOM), JP Morgan Chase (JPM), and Home Depot (HD), among many other “blue-chip” companies.
We’ve mentioned this particular ETF before and, yet, we like it even more because it’s excessively oversold, currently consolidating just under $64 a share. From here, we’d like to see the ETF refill its bearish gap around $68 initially.
We also like this ETF because of its exposure to strong dividend stocks.
Also, as noted by The Wall Street Journal:
“Dividend stocks have become the new darling on Wall Street, and investors looking for income are pouring billions of dollars into them. These securities are considered a good buffer during times of market volatility. They also are seen as an inflation hedge, considering that S&P 500 dividend growth has outpaced inflation since 2000.”
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
With recent bank failures, chaos, and a good deal of fear in the markets, volatility has been one of the top themes. With further chaos likely, we could see further spikes in the Volatility Index (VIX). One way to trade those spikes is with the UVXY, which typically moves up and down with the VIX indicator.
With an expense ratio of 1.38%, this particular ETF tracks the investment results that correspond to one and one-half times (1.5x) the performance of the S&P 500 VIX Short-Term Futures Index for a single day.
ProShares Bitcoin Strategy ETF (BITO)
Or, with Bitcoin pushing aggressively higher, we can look at the BITO. With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin, and is the world’s largest and most actively traded cryptocurrency ETF, according to ProShares.
BITO is mimicking the price of Bitcoin as closely as possible without investing in the cryptocurrency itself.
As noted by Money, “Like all crypto ETFs, part of the allure of BITO is that investors don’t need to deal with cryptocurrency wallets and private keys but can instead invest through a broker they already use.”
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Until next time, take good care…
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